Buterin’s Generous Donation Propels Tornado Cash to New Heights
Vitalik Buterin’s recent act of philanthropy has breathed new life into Tornado Cash, amid ongoing legal troubles faced by developers Alexey Pertsev and Roman Storm. The allegations of money laundering had cast a shadow over the privacy-centric technology, but Buterin’s donation has sparked renewed interest and optimism in the project.
Buterin, the co-founder of Ethereum, generously contributed approximately 30 ETH (equivalent to around $111,000) to a legal defense fund named “Free Alexey & Roman” via the crypto crowdfunding platform Juicebox. His support, along with other donations, has propelled the fund to nearly 597 ETH (approximately $2.23 million).
This significant contribution from Buterin has had a tangible impact on the sentiment surrounding Tornado Cash. The price of TORN, the native token of Tornado Cash, experienced a noticeable increase following the donation. There are several reasons for this price movement.
Firstly, Buterin’s public endorsement has amplified Tornado Cash’s visibility and credibility, potentially attracting more support for the cause. This heightened attention can draw in additional users and developers, further reinforcing the platform’s value in the crypto ecosystem.
Secondly, Buterin’s involvement has instilled confidence among Tornado Cash’s existing user base. As the founder of Ethereum, his support emphasizes the importance of privacy solutions and the need to protect developers working on such technologies.
It is evident that Buterin’s donation has created a more optimistic outlook for Tornado Cash.
The bullish setup of the TORN price could also attract potential buyers. After Buterin’s donation, the price of TORN briefly surged over 18% to reach $3.2 on May 30 before experiencing some profit booking.
However, the price of TORN quickly corrected, almost erasing its gains for the week. Yet, there is still hope as the token has formed a bullish pattern called the “bull flag pattern.” This pattern typically emerges in assets that are in a strong uptrend.
After a steep ascent, the token enters a consolidation phase, forming the flag of the pattern. Despite this period of consolidation, the buying pressure remains steady. A breakout from this phase often triggers another significant uptrend.
The pattern reaches completion when the price breaks out from the flag area, resuming its prior upward trajectory. Traders project the price target for the breakout by adding the length of the flag pole to the breakout price level.
According to technical analysis, if the token confirms the bullish pattern, the TORN price could potentially rally over 80% and reach a theoretical price target near $5. It seems that $5 is the target for the optimistic bulls of this prominent altcoin.
